MMA Seen As Beneficial To Radio

Some last-minute horse trading helped to secure the Music Modernization Act’s approval in the Senate, according to Digital Music News citing details shared by SiriusXM.

A late-stage deal assured the company’s support of the bill, potentially easing the objections of certain Senators.

Earlier on Tuesday, the Music Modernization Act passed the Senate in a miraculous ‘hotline’ vote, a mechanism that bypasses traditional Senate floor debate.  The fast-tracking move is designed to quickly shuttle non-controversial bills to a vote.

According to an email sent Tuesday night to Digital Music News by executives at SiriusXM, the satellite radio giant was offered a number of key concessions to win its approval.

That includes a preservation of its existing non-interactive streaming radio rate, with an extension granted until 2027.  That’s a five-year extension, and allows Sirius to avoid a lengthy court battle over a recent increase.

Additionally, Sirius secured a guarantee that its recorded royalty payments for pre-1972 songs would be shared 50% with the artists in question.  Previously, no such guarantee existed, raising concerns at Sirius that labels were hoarding the money.

Greg Maffei

That ‘concession’ is a bit ironic, given that mega-stars like Paul McCartney, Katy Perry, and Max Martin threatened to  ‘boycott’ Sirius if they didn’t relent.  But even prior to the last-second deal, Sirius had been fighting for language guaranteeing the 50% payout to artists.

Unfortunately for Sirius, that means that traditional radio stations will continue to enjoy huge exemptions, and a major financial advantage over its satellite rivals.  But maybe that’s a fight for another time, and Sirius obviously got enough to move forward.

Greg Maffei, president and CEO of Sirius parent Liberty Media, heralded the new deal.  “We are pleased to join with the music community in sponsoring amendments that protect artists in this legislation,” Maffei offered.

“It is important that the music industry move forward so that artists can showcase their work throughout the United States.”

Both Mitch Glazier, president of the Recording Industry Association of America (RIAA), and David Israelite, CEO of the National Music Publishers’ Association (NMPA), affirmed their solidarity with Sirius moving forward.

The NAB released the following statement from President and CEO Gordon Smith:

"NAB applauds Senate passage of the Orrin G. Hatch Music Modernization Act. Naming this critical legislation after Senator Hatch is a fitting tribute to his tireless efforts to improve the lives of songwriters. NAB appreciates the hard work of Senators Hatch, Whitehouse, Alexander and Coons, Chairman Grassley and Ranking Member Feinstein in producing a compromise bill that will benefit songwriters, legacy recording artists, producers, digital streaming services, and music listeners.

"We are particularly supportive of a provision added to the Senate bill ensuring enhanced congressional review of any DOJ changes to ASCAP and BMI consent decrees. These decrees are essential to a functioning music marketplace, and any action to terminate them will now be preceded by appropriate Congressional oversight to protect the interests of songwriters, licensees, and consumers of music."